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Volkswagen Canada has stopped selling certain diesel models in Canada after the German-based automaker was accused of cheating on U.S. air pollution tests for years.

“We have issued, as of today, a stop-sale order to our dealers in Canada for all the affected vehicles. That’s pending resolution of this matter,” VW Canada spokesperson Thomas Tetzlaff said in an interview Monday.

The move comes three days after the U.S. Environmental Protection Agency (EPA) said half a million diesel-powered VWs had been programmed to bypass emission controls, except during emissions tests.

Shares in the parent company lost nearly a quarter of their value after Volkwagen AG said Sunday that it would stop selling the cars in the U.S. while launching an internal investigation into what went wrong.

The Wolfsburg, Germany-based company admitted to fitting its U.S. diesel vehicles with software that turns on full pollution controls only when the car is undergoing official emissions testing, the EPA said Friday.

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During normal driving, the cars with the software, which the EPA called a “defeat device,” would pollute 10 times to 40 times the legal limits, the agency estimated.

The diesel Golf TDI was among the models Volkswagen pulled from sale in Canada on Monday following the admission that the company had installed software to cheat emissions tests. (LUCY NICHOLSON / REUTERS)

The scandal threatened to damage Germany’s vital automotive industry, German Economy Minister Sigmar Gabriel said in a statement urging VW to clear up the allegations.

It also cast a shadow over future sales of “clean diesel” vehicles. The technology, intended to meet regulators’ clean air criteria without sacrificing vehicle performance and fuel efficiency, was a centerpiece of VW’s North American strategy.

The models include the Golf, Jetta, Passat and Beetle, some from as far back as 2009, VW Canada said. The affected vehicles are all equipped with a 2 litre, 4-cylinder turbo direct diesel engine, VW said.

Certain versions of the Audi A3 will also no longer be available.

Cars already on the road are not being recalled as the problem is not safety-related. It could take up to one year to identify corrective actions, develop a recall plan, and issue recall notices, the EPA said on Friday. Repairs would be at VW’s expense, the agency said.

About one in five VW vehicles sold in Canada have diesel engines, VW Canada said. VW had sold just over 50,000 vehicles this year up to the end of August, representing just under 4 per cent of the total Canadian market.

It’s unclear how long the models will be off the market, Tetzlaff said.

“We’re working with our colleagues in the U.S. and Germany to develop a solution for this,” he said.

The company is also co-operating with regulators, he said.

Environment Canada did not immediately return a call for comment on its role in the matter.

The U.S. EPA is the lead agency on the matter as it certifies vehicles that have met certain emissions standards for all of North America.

Chief executive officer Martin Winterkorn, who has led the company since 2007, said he was “deeply sorry” for breaking the public’s trust and that VW would do “everything necessary in order to reverse the damage this has caused.”

The discrepancy emerged after a relatively small non-governmental organization, the International Council on Clean Transportation, commissioned real-world emissions tests of diesel vehicles including a Jetta and Passat, then compared them to lab results.

The main concern is with nitrogen oxides, which contribute to smog and are associated with a wide range of respiratory health problems, such as asthma.

The EPA said VW could face $18 billion U.S. in penalties.

VW said it’s cooperating with the probe and ordered its own external investigation into the issue.

The company didn’t explain why it might have sought to deceive regulators. But auto industry experts say the emission controls may have hurt vehicle performance, making them less fun to drive.

The European Commission also said it’s taking VW’s cheating seriously and is in contact with U.S. regulators and the company about details of the case.

German competitors BMW AG and Daimler AG said on Monday they aren’t aware of a similar U.S. probe into their cars. Shares of both slipped the most in almost a month.

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